New Delhi: The Australian government will press state energy leaders on Friday to back a new plan designed to secure reliable, affordable power supply while cutting emissions, seeking to end a decade of warfare over climate and energy policy.State energy ministers are meeting with Australian energy minister Josh Frydenberg to discuss whether to push ahead with a detailed design for a National Energy Guarantee to be approved later in 2018.
"Today is an opportunity that can't be missed to deliver cheaper, cleaner and more reliable power," Frydenberg said at the start of the meeting.
A rare coalition of business groups, power providers, and energy consumers is urging states to back the plan, seeking an end to years of investment uncertainty which has led to blackouts and soaring power prices in Australia.
The National Energy Guarantee would require the power sector to cut carbon emissions by 26 percent from 2005 levels by 2030.
At the same it will require electricity retailers to ensure they have enough supply from steady power sources like coal- and gas-fired plants to back up intermittent sources like wind and solar power.
"Lack of agreement on the NEG will see increased volatility in markets, higher energy prices, a lack of forward planning and investment, and likely result in manufacturing jobs heading offshore to more secure and affordable energy jurisdictions," the Energy Users Association of Australia said in a statement.
In a sign of progress in securing long elusive bi-partisan support, Labor opposition energy spokesman Mark Butler this week backed efforts to progress work on the National Energy Guarantee.
"The policy is not at a point yet where I think ministers will either say yes or not to it, but I think everyone wants to see work continue on a bipartisan solution," Butler said on Thursday on Australian Broacasting Corp television.
The main stumbling block is opposition from Labor-led states Victoria and Queensland, which want to cut carbon emissions more sharply as they have ambitious targets for renewable energy and want to end coal-fired generation.
Frydenberg has said the government may compromise by letting states set their own emissions targets under the umbrella of the National Energy Guarantee, as that would ensure there is back-up for wind and solar power to keep the lights on.